Virgin Retail has signed a£35 million, five-year deal with Hays Logistics as it overhauls its supply chain systems.
Hays will manage distribution for the whole of Virgin's retail stock to its 170 stores from a 75,000 sq ft (6,970 sq m) central distribution centre at Banbury, Oxfordshire.
Previously, Virgin's suppliers made several deliveries each day direct to stores.
Virgin Retail chief operating officer Dennis Henderson said: 'Far from the supply chain logistics side of our operation being seen as a necessary evil, we have turned it on its head and used it as an opportunity to drive margins and increase our bottom line.'
The change will also enable Virgin to move more staff on to the shopfloor, rather than dealing with deliveries in the back-office.
In-store availability will also improve as a result of the system.